UK consumer spending slips 0.2% in 2025, first annual decline since 2020 as inflation bites

UK consumer card spending fell 0.2% in 2025, marking the first annual drop since 2020 as households reacted to higher living costs and weak income growth. While discretionary outlays such as clothing and entertainment rose only modestly, spending on health, beauty, and pharmacy items jumped 9.5%, showing a shift toward smaller indulgences despite overall caution.